Question

ich-vel activity 34) Which of the wint ities would b e A)sarina pauipma 2) Design a new product Training canployees D) Muling part equired for the final product 33) 35) Arion, Inc., manufatures and polis por Hocuset R3 and Product NO. The Proceed 3 and Product tal production id sales of Produk RS200 units and of Product NO Data concerning the expected production of a crow d the expected total de Units And of Product NOI 100 units labor hours (DLH) recruired to produce the cutout apar below: Expeeted Production 200 100 Dinar Totul Direct Labor-Howe Perut Labor-Hos 8.0 1.600 110 1.100 2.700 Product R3 Product NO Total direct labor-hours The direct Tabor rate is $15.80 per DLH. The direct materials cost per unit is $287.80 for Product R3 and S104.80 for Product NO. The company is considering adopting an activity-based costing system with the followin activity cost pools, activity measures, and expected activity: Estimated Expected Activity Overhead Activity Cost Pools Activity Measures cost Product R3 Product NO Total Labor-related DLHs $ 39,636 1,600 1,100 2,700 Production orders orders 57,421 600 700 1,300 Order size MHs 432.075 3,600 3,900 7,500 $ 529,132 The unit product cost of Product R3 under activity-based costing is closest to: (Round your intermediate calculations to 2 decimal places.) A) $2,177.97 per unit B) $1,451.18 per unit C) $1,701.13 per unit D) $1,981.96 per unit 6 The Assembly Department started the month with 24,000 units in its beginning work in process inventory. An additional 309,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 29.000 units in the ending work in process inventory of the Assembly Department How many units were transferred to the next processing department during the month? A) 333,000 B) 362,000 C) 304,000 D) 314,000

Answer 1

As a rule only one question can be answered. Further, when no specific question is requested (maximum of 1), the first question is only answered.

34. Which of the following activities would be classified as batch-level activity ?

Appropriate response: (A) Setting up equipment

Justification: Batch-level activities are costs related to the production of a batch of the same product. Since equipment setting up cost is incurred only once, and it makes the equipment useful for the production for the entire batch of goods, the same is a batch-level activity.

Ruling out of other options:
(B) Designing new product: this is not a production related cost
(C) Training employees: this is part of organization sustaining activity
(D) Milling a part required for the final product: this does not pertain to production of batch of products. It is only for a singular unit of production